Why short positions in BTC are no longer profitable
The value of BTC has slightly decreased over the past 24 hours, breaking through the $ 23,000 bar, and then rolled back to $ 23,162. The movement of bitcoin was exactly repeated by many coins, which once again proves the active influence of BTC on the entire crypto market
Despite this price correction, the charts from Santiment show an advantageous position for both BTC and ETH. BitMEX perpetual funding rates for BTC and ETH are back in neutral. This happened after long positions were outbid by short ones, especially on ETH, last week.
If you look at the Bitcoin chart in the past, you can see that the coin had positive price dynamics before when the rates were in the neutral zone. So opening long positions in BTC is now a more thoughtful move.
This forecast will be confirmed if positive price dynamics continue in the near future, and Bitcoin can stay above the $ 20,000 mark. In this case, many traders who are used to shorting will have to reconsider their priorities.
The bitcoin bull market is also indirectly confirmed by the ability of the first cryptocurrency to maintain its price level, despite the growing volatility in the market.
So, despite the rollback of the BTC price today to $ 22,900, its market price has increased by 8% over the last week after reaching the current maximum of ~ $ 24,150 on December 20.
Looking at this chart, which depicts the volatility of BTC, you can see that the rate of fluctuations in value rose from 1.67 to 3.85 percent.
At the same time, the price remained unchanged relative to its current price mark, which is an excellent indicator. He highlights the cryptocurrency's ability to keep its price above $ 20,000, which is likely to be the next level of support for 2021.